Space reserves increase after Trump’s inauguration

Unique space stocks rose Tuesday, a rally that one Wall Street analyst attributed to exuberance around the sector after President donald trump‘s opening.

“After the election, there seems to be a very deep and broad enthusiasm for opening up private space opportunities,” Deutsche analyst Edison Yu told CNBC.

“It’s not just about the headlines. When you talk to any (venture capital) investor, any institutional investor, any family office… it seems like everyone has become much more interested and excited (about) the space,” said Yu, whose coverage includes six space companies: blacksky, Iridium, Planet, rocket laboratory, Telesat and Viasat.

Several of the sector’s stocks rose nearly 20% or more with no clear individual catalysts, including minaricrocket laboratory, Moments, Intuitive machinesplanet and Connected.

Redwire, up 51.4%, was the day’s best performer after announced its planned acquisition from defense technology company Edge Autonomy for nearly $1 billion, and as a result, full-year 2025 revenue is forecast to reach up to $605 million, roughly double last year.

Investors also boosted Viasat, up 32.9%, as reiterated that NASA selected him as one of four companies for a five-year communications contract worth up to $4.8 billion to provide satellite connectivity services as part of the “Near Space Network.”

Trump briefly touched on space in his inauguration speech, but did not mention NASA or the space agency’s Artemis program, his current top priority that aims to return astronauts to the moon.

“We will pursue our manifest destiny to the stars, launching American astronauts to plant the Stars and Stripes on the planet Mars,” Trump said, with the SpaceX CEO. Elon Musk applauding in the audience behind him.

Space reserves in general have recovered since the presidential electionsand several saw their stock prices double or more in the past three months, according to FactSet.

Deutsche’s Yu pointed to three catalysts driving the industry: Trump Jared Isaacman nomination being the next NASA administrator, significant trading volume from retail investors, and the expectation of more multimillion-dollar federal contracts at stake.

“After Jared Isaacman was chosen as the next administrator of NASA, he was very well received by the institutional community. If you talk to investors who follow space very closely, if you talk to people who run companies, that was considered very positive.” Yu said.

Space stocks largely recovered in 2024 after the The sector plummeted widely in previous years.. Several rose in the past 12 months, according to FactSet, with Intuitive Machines up 779%, Redwire up 715%, AST SpaceMobile up 648% and Rocket Lab up 543%.

However, Yu does not “expect them to repeat this crazy 2024 performance” in 2025. He described last year’s rally as a significant revaluation of valuations that were “trading at very depressed levels.”

“These valuations, needless to say, are much richer than six months ago or even three months ago,” Yu said.